NS&I has launched its new fixed term bonds for the over 65s. They are called the NS&I 65+ Guaranteed Growth Bond and offer market beating interest rates.
The one-year bond pays an annual interest rate of 2.8 per cent before tax, and the three-year bonds pay 4 per cent before tax.
Investment is limited to £10,000 in each bond, making a maximum of £20,000 per individual.
The bonds are expected to sell like hot cakes so investors need to get in quickly if they want to secure these high rates.
NS&I has an allocation of £10 billion for Pensioner Bonds. In 2011, popular NS&I index-linked certificates sold £5 billion in 4 months before being closed.
